/raid1/www/Hosts/bankrupt/TCRAP_Public/001013.MBX      T R O U B L E D   C O M P A N Y   R E P O R T E R

                             A S I A   P A C I F I C

             Friday, October 13, 2000, Vol. 3, No. 200

                                      Headlines


* A U S T R A L I A *

BHP: HBI plant unlikely to meet final deadline
FORTIS AUSTRALIA: Liquidates property to improve liquidity
PORT KENNEDY RESORTS: Supreme Court orders assets frozen


* C H I N A  &  H O N G  K O N G *

HAINAN INT'L TRUST: Banks declare bonds in default
TELEVISION BROADCASTS: Ad rate rise drops share price


* I N D O N E S I A *

ASIA PULP & PAPER: Debt taking its toll
PT PERUSAHAAN LISTRIK: To pay $290M U.S. insurance claim


* J A P A N *

BRIDGESTONE/FIRESTONE: Replaces CEO
DAIEI INC: Debt situation unstable with management moves
TAISEI CORP: Posts 1H loss
TOYAMA CHEMICAL: Shares dive on stroke drug news
YOKOGAWA BRIDGE CORP.: To book loss on Chiyoda failure


* K O R E A *

DAEWOO CORP: To be split up
DAEWOO HEAVY INDUS.: To be split up
DAEWOO MOTOR: Creditor banks provide W100B
HYUNDAI OIL REFINERY: Under FTC investigation, faces fines
INCHON OIL REFINERY: Under FTC investigation, faces fines
LG CALTEX OIL: Under FTC investigation, faces fines
SAMSUNG ELECTRONCIS: Share price falls
SK CORP.: Under FTC investigation, faces fines
SK TELECOM: Share price falls
S-OIL: Under FTC investigation, faces fines


* M A L A Y S I A *

CAMERLIN GROUP SDN BHD: To liquidate Dutch affiliate
SIME DARBY BHD: Voluntary liquidation for affiliates
TIME ENGINEERING: Timing bad for debt-cut IPO
UNITED ENGINEERS MALAYSIA: Timing bad for debt-cut IPO


* P H I L I P P I N E S *

WESTMONT INVESTMENT CORP.: SEC widens probe


* S I N G A P O R E *

CHARTERED SEMICONDUCTOR MFG.: Share price falls


* T H A I L A N D *

LOXLEY PLC: To hold new vote on rehab plan Oct. 26
NAWARAT PATANAKARN: Rehab plan approved
PROPERTY PERFECT: Posts annual loss


=================
A U S T R A L I A
=================

BHP: HBI plant unlikely to meet final deadline
----------------------------------------------
BHP has indicated that it may not be able to prove the
commercial viability of its $2.5 billion Hot Briquetted
Iron plant in time to meet chief executive Mr Paul
Anderson's December deadline.

Senior executives of the company's HBI operations said in
Port Hedland yesterday that, technically, the plant had
proved itself but indicated it may be running out of time
to pass critical financial hurdles. BHP's HBI business
leader, Mr Bill Walls, said the operation still had to pass
three criteria which included two of the four trains at
present operating in excess of 120 days continuously,
producing at 75 tonnes of briquettes an hour and having a
turnaround period in the event of a shutdown of no more
than 20 days.

The best performance that the company has been able to
achieve so far from any of the trains is only 88 days of
consecutive production. And with less than that time
remaining until the end of December, Mr Walls conceded the
best BHP could hope for was only 110 days of consecutive
production.

"The board meets in December - we have asked for time to
allow trials to run. We will not have all the answers," Mr
Walls said.

The HBI plant has significantly improved its performance
since BHP spent $66 million on water injection trials.
Two of the plant's four production trains were now
operating satisfactorily and the company is hoping to have
a third train on line by some time next month.

Mr Walls said he was uncertain whether Mr Anderson would be
flexible on the timing of his decision but, either way, the
HBI team would have to provide the BHP board with a
preliminary report on the operation by next month and a
final report with a recommendation by early December.
(Sydney Morning Herald  12-Oct-2000)

FORTIS AUSTRALIA: Liquidates property to improve liquidity
----------------------------------------------------------
Netherlands-based Fortis Australia Pty Ltd is liquidating
its $30 million Australian direct property portfolio to
focus on the indirect listed trust market.

The group, a long-term investor in Australia, has
properties in Sydney, Melbourne and Tasmania which are to
be sold through expressions of interest. It appears the
decision to improve liquidity was made by the Netherlands-
based head office.  Fortis Australia property manager Mr
John Thomas said the group remained interested in
Australia, but intended to focus on the indirect market.

"We want to keep our exposure but in a more liquid form
through holding units in listed trusts or other
opportunities, rather than through direct property," Mr
Thomas said.  "It is expected the Victorian and Tasmania
properties will be put on the market within the next few
weeks."

The first two sites to be offered are in the tight lower
North Shore market. The properties, an office building at
118 Walker Street, North Sydney, and 51 Willoughby Road,
Crows Nest, occupied by a Commonwealth Bank branch, are to
be offered separately through Chesterton International.
Mr Thomas said Fortis had been delighted with the
performance of both properties.

SMEC Holdings, the major tenant at Walker Street, has
exercised its option to lease about 60 per cent of the
building until 2006 and the Fortis Group will lease back
562sqm on levels one and two. The Walker Street property,
constructed in 1983, comprises about 3,750sqm and basement
parking for 42 cars.

Chesterton International director Mr Bevan Kenny said the
site was a well-maintained investment property, 75 per cent
leased to public companies. "The quality of these lease
covenants coupled to the excellent growth potential,
provides a great opportunity to invest in a tight market,"
he said.

Joint selling agent Mr Clinton Stoermer, associate director
at Chesterton, said both properties were in prime
locations. "The Willoughby Road property is ideal for a
private investor looking for security and capital growth;
the Commonwealth Bank lease expires in 2006."

The other properties for sale include nine retail,
commercial and industrial sites in the south and eastern
suburbs of Melbourne, Dandenong and Williamstown.  There
are also four properties in Tasmania, which are expected to
attract a variety of investors.

Activity in the North Sydney commercial leasing market
remains brisk as solid tenant demand, particularly from
telecommunication and information technology firms,
continues to drive positive net occupancy growth.
According to the Property Council of Australia, as of July
2000 the overall vacancy rate was 1.9 percent, compared
with 6.9 percent 12 months ago. (Sydney Morning Herald  11-
Oct-2000)

PORT KENNEDY RESORTS: Supreme Court orders assets frozen
--------------------------------------------------------
Port Kennedy Resorts Pty Ltd has had its assets frozen by
the Supreme Court of Western Australia on 10 October 2000.

The freeze on assets is pending the outcome of a legal
battle with the company's estranged Singaporean financiers.
Financier Pac-Asia Holdings Pty Ltd was granted the
injunction by Judge John McKechnie.  The action was taken
despite warnings from Port Kennedy director Richard Lukin
that the company might be hit with a default notice from
the Western Australian Government if it could not complete
planned asset sales.


==============================
C H I N A  &  H O N G  K O N G
==============================

HAINAN INT'L TRUST: Banks declare bonds in default
--------------------------------------------------
Japanese creditors have declared the Samurai bonds issued
by Hainan International Trust & Investment Corp (Hitic), in
default of 28.5 billion yen (about HK$2.05 billion).

The declaration by Sumitomo Bank and other Japanese
creditor banks, effectively a demand for immediate payment,
is the first default of a mainland company on the Samurai
market.  It heightens uncertainties about how the
beleaguered Hainan provincial government's fund-raising and
investment arm plans to structure a scheme to repay
creditors.

The default followed Hitic's failure to make good on a 238-
million yen coupon payment to holders of a 14-billion yen
seven-year Samurai Bond issued in 1997.  The coupon
originally was to be paid on September 25, however,
bondholders extended a 14-day grace period which expired on
Monday.

Japanese banks also called a default against a 14.5 billion
yen seven-year Samurai note issued in 1994. Hitic had
trouble making an interest payment on that bond in June,
but the underwriters decided against declaring an official
default. The company made a payment on July 27.

The Japan Credit Rating Agency yesterday downgraded the two
bond series to D, effectively default status.  Japanese
bankers declined to discuss the matter, however it is
expected the Hainan company's problems will figure
prominently in discussions when Premier Zhu Rongji arrives
in Tokyo today.

Analysts said Hitic's bond default certainly would sour
overseas investors to non-sovereign mainland offerings and
make it more difficult for China's non-investment grade
companies to raise money offshore.  However, the company's
problems are not likely to have an impact on Beijing's
planned US$1 billion, 10-year international sovereign issue
expected in the middle of next month.

Hitic is not the first mainland window company to default
on an international bond issue.  In 1998, Guangdong
International Trust & Investment Corp defaulted on two
series of Yankee bonds worth US$350 million after the
company was declared bankrupt.

Provincial investment company Guangdong Enterprises
(Holdings) also has defaulted on a 10-year US$500 million
bond issued in 1997.  "The bond market will make a clear
distinction between sovereign and non-sovereign credit,"
said Andy Xie Guozhong, senior regional economist with
Morgan Stanley Dean Witter in Hong Kong.

Still, the default casts greater uncertainty over how
Hitic's long-awaited restructuring is likely to proceed.
Hainan sources said the company had been placed under the
supervision of a provincial government restructuring office
and ordered to halt all business activity.

Company and government officials in the island province
yesterday refused to speculate on a timetable for the plan.
However, creditors to Hitic and other debt-plagued Hainan-
based trust companies believed the default represented the
first move by the government to structure a proposal which
would offer substantially less than the face value of the
company's debts.

Foreign creditors to other indebted mainland trust
companies have accepted settlements that saw them forfeit
substantial claims in return for immediate payments.
Foreign creditors to Dalian International Trust and
Investment Corp earlier this year accepted a deal which saw
repayment of only 60 per cent of the company's US$150
million debts.

An official with the non-bank financial institutions
department of the People's Bank of China said it had not
determined how to proceed.  "It will be decided by the
governor," the official said, referring to central bank
governor Dai Xianglong. (South China Morning Post 12-Oct-
2000)

TELEVISION BROADCASTS: Ad rate rise drops share price
-----------------------------------------------------
Television Broadcasts (TVB), the SAR's dominant free-to-air
television network, tumbled 5.7 percent yesterday after
announcing a smaller-than-expected increase in advertising
rate charges.

The broadcaster will increase advertising base rates
between 3 per cent and 7 percent, while advertisers and
analysts expected a double-digit increase.  The counter
fell as much as 6.6 percent to an intra-day low of HK$44
yesterday, before recovering to close at HK$44.40.

TVB's shares faced an even bigger loss than the benchmark
index. The Hang Seng Index fell 2.74 percent or 427.11
points to close at 15,127.  On Tuesday, TVB's shares
climbed to HK$47.10 on the expectation the company would
announce a "double digit" rise in advertising rates.

However, the broadcaster said it was company strategy to
introduce a moderate increase in rates to expand its
advertiser base and increase demand for advertising slots,
according to TVB marketing and sales director Leung Kin-
wah.

"We want to let people think that TV advertising is an
affordable medium, so that when there is more demand we can
push up the rate level," said Mr Leung.

He said the company reduced the discount rate for advance
booking by 2 percent to 4 percent.  This would leave the
effective increase in advertising rate up from 8 percent to
11 percent, said Mr Leung, adding TVB would consider
lifting its rates again in the second quarter of next year
if there was strong demand for TV advertising.

Worldsec International analyst Jean Hydleman said an
increase in rates would have a minimal impact on TVB's
revenue because it uses a pre-emptive auction method to
determine the actual rate of its prime-time advertising
slot.

"It depends on whether there is lots of demand from
advertisers to bid up the price," said Ms Hydleman.
She said the increase would only lift TVB's revenue 1
percent to 2 percent.

TV advertising revenue accounts for about two-thirds of
TVB's revenue of which about 70 per cent to 80 per cent is
generated from the Hong Kong market. (South China Morning
Post  12-Oct-2000)


=================
I N D O N E S I A
=================

ASIA PULP & PAPER: Debt taking its toll
---------------------------------------
Shares of Asia Pulp & Paper (APP) and its component units
dropped after analysts cut investment ratings on worries
about the group's ability to repay more than US$10 billion
in debt.

American depositary receipts of Asia Pulp, Asia's largest
paper-maker outside Japan, plunged 4.4 per cent to a record
US$1.375 in New York.  Shares of Indah Kiat Pulp & Paper,
the most profitable APP unit, fell as much as 1.3 per cent
to a 33-month low of 1,105 rupiah in Jakarta yesterday.

On Tuesday Indah Kiat had its stock-rating cut by Morgan
Stanley Dean Witter, which said falling pulp prices and
rising borrowing costs would reduce investors' returns.
The cut follows reductions by two other brokerages in the
past two weeks on worries APP may use profits from its
units to avoid defaulting on the US$2 billion in repayments
due next year.

"Indah Kiat is APP group's cash cow," said Nilesh Bhatt, an
analyst at Rashid Hussain Securities in Jakarta.  "The fear
is APP will milk Indah Kiat to meet its debt repayments. We
do not think APP can repay its loans from its current cash
flow."

Morgan Stanley analyst Charles Spencer said: "The company
needs to generate very high returns to get us excited about
the stock.  "If you can get a 25 per cent to 30 per cent
return on the company's debt, then equity will need to pay
you a premium to that."

Asia Pulp last month unveiled a plan asking investors to
exchange or adjust terms on more than US$2 billion of bonds
- offering them a mix of cash and new debt paying a higher
interest. In July, APP borrowed US$100 million - paying 25
per cent interest - to avoid defaulting on an earlier loan.
That was arranged by J P Morgan & Co.

To make matters worse, the price of Indonesian pulp, the
main source of revenue for Indah Kiat, has fallen by 7 per
cent from a high of US$690 a tonne in July, said Morgan
Stanley.  "Asian pulp demand has not recovered from the
summer slowdown as rapidly as was hoped," it said.

The falling pulp prices, rising borrowing costs and APP's
failure for more than a year to sell some of its
unprofitable businesses, such as packaging units, to repay
part of its US$10-billion debt have increased worries
investors have about the stock.  Johannes Salim, at HSBC
Securities Indonesia, and Masya Spek, at G K Goh
Stockbrokers, have in the past two weeks recommended
investors "sell" Indah Kiat shares.

Mr Salim is also worried APP may dip into Indah Kiat's cash
to pay its debt.  The group as a whole and its units run
the risk of a debt default if APP is unable to get
investors to agree to its debt rescheduling plan, he said.

He recommended cigarette-makers Gudang Garam and Hanjaya
Mandala Sampoerna as better investments in Indonesia.
However, Morgan Stanley expects Indah Kiat shares will beat
the benchmark index after trailing so far this year.
"The company has an opportunity to successfully exchange
some of its debt at the holding company and buy itself some
more time, and the debt yields could rally back," Mr
Spencer said. (South China Morning Post  12-Oct-2000)

PT PERUSAHAAN LISTRIK: To pay $290M U.S. insurance claim
--------------------------------------------------------
Indonesia's state utility, PT Perusahaan Listrik Negara
(PLN), will pay $290 million on an insurance claim to the
U.S. arising from a disputed power plant contract,
according to the Asian Wall Street Journal, quoting PLN's
president-director Kuntoro Mangkusubroto.

PLN said it's negotiating terms with the Overseas Private
Investment Corp. or Opic, a U.S. government insurance
agency which had threatened to seize Indonesian's foreign
assets if payment is not made.  The claim arose from a
power contract signed by former Indonesian president
Suharto with U.S.-based Midamerican Energy Holdings Co.,
which PLN refused to pay. Opic had repaid part of the claim
and now wants Indonesia to compensate it, the paper
reported.

PLN said in August its loss widened by 11 percent to 11.6
trillion rupiah ($1.3 billion) in the first half of the
year as a decline in the value of the rupiah quadrupled the
cost of power from other producers. PLN gets revenue in
rupiah, but pays for some of its power from independent
power producers in dollars. (Bloomberg 12-Oct-2000)


=========
J A P A N
=========

BRIDGESTONE/FIRESTONE: Replaces CEO
-----------------------------------
Bridgestone/Firestone has replaced chief executive officer
Masatoshi Ono at the helm of the embattled tire company
with John Lampe, his right-hand man. Lampe was approved as
CEO and president at a board meeting Oct. 11, at which time
he immediately apologized for accidents linked to failures
of Firestone tires and promised a management shake-up.

But similar to his predecessor, he made it clear that
Firestone does not accept full responsibility for the 100
deaths and hundreds of injuries stemming from tires
failures on Ford Explorer vehicles. He said the "root cause
or causes" of the tread separation problems that prompted a
recall of 6.5 million tires in August are still under
investigation.

Lampe's first task as CEO will be to put together a new
management team. Isao Togashi, who was drafted in from
parent Bridgestone of Japan, will head up manufacturing and
development at the US subsidiary. Togashi will oversee
manufacturing and process controls; research and
development; and quality-assurance procedures.

Lampe said he would announce more appointments in the
coming weeks, but he said all information on quality
control would be fed directly to him in future.  In the
meantime, the company will concentrate on wrapping up the
recall by November. The cost of that recall to the company
is now US$450 million in this calendar year, while sales
for August and September further declined.

DAIEI INC: Debt situation unstable with management moves
--------------------------------------------------------
The financial stability of Daiei Inc. looms unstable after
a share purchase scandal that has seen the demise of the
company's top tier of management.

Isao Nakauchi, founder and chairman; Tadasu Toba,
president; and Kazuo Kawai, vice-president, this week
resigned, leaving a power vacuum at a time when the group
is undergoing a critical restructuring.  Mr Nakauchi, who
was not involved in the share scandal, will retain his
executive role. The new president-designate, Kunio Takagi,
is not assuming his post until the shareholders' meeting in
May.

Daiei's share price yesterday fell 10 per cent to a record
low of Y231.  Investors fear the loss of Mr Toba in
particular threatens Daiei's ability to push through
restructuring aimed at slashing Y550bn ($5.1bn) out of its
Y2,200bn in debt by next February.  With interest rates
expected to rise, Daiei cannot afford to delay cutting its
mountain of debt.

Moody's has placed Daiei's long-term credit rating at B1
under review for possible downgrading.  Daiei has yet to
address the problems in its core retailing business. Out of
308 stores, 75 were in the red at the end of February, and
the company plans to close 50 of these. Daiei has posted a
net loss for two years running.

Creditors may prove unforgiving. Shinsei Bank, formerly the
Long Term Credit Bank of Japan, which has been reluctant to
forgive loans, has outstanding loans to Daiei of Y150bn.
It is understood Mr Toba failed to retain the support of
the board largely due to directors' unease with his
restructuring programme.

Now that he is no longer at the helm, overcoming this
resistance will prove even tougher.  Mr Toba was brought in
two years ago by Mr Nakauchi. The choice of an outsider
suggested no internal candidates were considered capable of
implementing the drastic restructuring the group needed.
Toshiko Binder, analyst at HSBC Securities in Tokyo, said:

"It seems that bringing in an outsider has not worked. We
are back to square one."

Mr Nakauchi, who has already failed once in his attempt to
return the group to health, will have effective control.
The president designate, Mr Takagi, does not enjoy Mr
Toba's reputation for stringent management.  Analysts
credit Mr Toba with pushing through a three-year
restructuring, which calls for returning all group
companies to the black by the end of the fiscal year.

Daiei has already sold shares in Lawson, a convenience
store chain, in a public offering. It is seeking to sell
seven hotels and 50 supermarket and discount stores. Job
cuts in the three years to March are expected to total
1,700 out of 13,776.  More real estate and equity assets
are being put on the block.

But internal resistance to further asset sales is
understood to be strong. Mr Nakauchi - who built Japan's
largest supermarket group from a modest pharmacy started in
1957 - has been reluctant to sell some of Daiei's more
prominent assets, such as shares in Recruit, the publishing
group, and the Fukuoka Dome, the home ground of the Daiei
Hawks baseball team, which could even be up for sale.
(Financial Times 11-Oct-2000)

TAISEI CORP: Posts 1H loss
--------------------------
Taisei Corp expects to post a consolidated net loss of 18.3
billion yen (US$169.6 million) for its fiscal year's first
half, which ended Sept. 30. Previous company projections
set the loss at 12 billion yen.  The worse-than-expected
result is due mainly to a 10 billion yen writeoff in
capital contributions and subordinated loans to Chiyoda
Mutual Life Insurance Co., which applied for court
protection Monday.

TOYAMA CHEMICAL: Shares dive on stroke drug news
------------------------------------------------
Toyama Chemical Co. plans to withdraw its best-selling
Sarpul stroke treatment from the Japanese market after
studies showed it wasn't effective. The news sent shares of
the drug and chemical maker spiraling downward 13 percent
to 380 yen, down 60 yen.

The company received 30 percent of its group revenue from
the drug last year. Sarpul originally was developed by
Roche Holding AG and licensed to Toyama Chemical. Toyama
Chemical and Roche's local subsidiary jointly had been
marketing the drug in Japan.

But in July, Toyama Chemical stopped promoting Sarpul to
doctors after its own studies failed to show the drug was
effective. Last month, the company revised its earnings
forecast to call for a group net loss of 710 million yen
($6.6 million) for the year ending March 2001, a turnaround
from its previous forecast of 1.3 billion yen in profit.

YOKOGAWA BRIDGE CORP.: To book loss on Chiyoda failure
------------------------------------------------------
Yokogawa Bridge Corp will book a special loss of 500
million yen (US$4.6 million) for its first semester this
year for creating a loan loss reserve for bonds it bought
from failed Chiyoda Mutual Life Insurance Co.  The company
bought the unsecured subordinated bonds with a face value
of 500 million yen in July 1999.

Yokogawa Bridge added that if Chiyoda - its top shareholder
- decides to sell its holdings of more than 2.7 million
shares of Yokogawa Bridge, it will buy them back with
capital reserves and retire them.

Additionally, the company noted that its qualified pension
program managed by Chiyoda, which has 2.6 billion yen in
assets, may incur a loss of as much as 10 percent. If that
occurs, the program will face a new shortfall of roughly
250 million yen.


=========
K O R E A
=========

DAEWOO CORP: To be split up
DAEWOO HEAVY INDUS.: To be split up
-----------------------------------
With the passage through the National Assembly Monday of a
revision bill to the Law on Limiting Special Tax Treatment,
Daewoo Heavy Industries and Daewoo Corp. will be split into
three separate companies, company officials said yesterday.
Daewoo Heavy Industries will be divided into a shipbuilding
unit, a machinery company and another which will assume the
bad assets of the two spin-offs.

"The new law exempts a workout company from taxes related
to corporate splitting. We will be exempted from taxes
totaling 236 billion won," a company official said.

The company's stock will be suspended from trading Oct. 19.
The three units will be officially inaugurated Oct. 23 and
be listed as separate entities on the Korea Stock Exchange
this year.  Daewoo Corp. will be split into a trading
company called Daewoo International, a construction firm,
Daewoo Construction, and one more which will retain the old
name. The company will be exempted from taxes amounting to
336.2 billion won. The three new companies will be launched
Oct. 31. (Korea Herald 12-Oct-2000)

DAEWOO MOTOR: Creditor banks provide W100B
------------------------------------------
Korea Development Bank (KDB) has confirmed that five
creditor banks of Daewoo Motor have provided 100 billion
won in fresh operating capital to the cash-strapped
automaker.

According to the KDB bank official, KDB, Hanvit, Korea
First, Seoul and Korea Exchange banks provided the support
in the form of trade credit. The official added that the
support was provided as part of the normal support the
creditor banks have been offering to Daewoo Motor every
month since the automaker was placed under a workout
program.

"Daewoo's request for additional funding support will be
discussed by the creditor banks after the company presents
a self-rescue plan," the official said. (Korea Herald 12-
Oct-2000)

HYUNDAI OIL REFINERY: Under FTC investigation, faces fines
INCHON OIL REFINERY: Under FTC investigation, faces fines
LG CALTEX OIL: Under FTC investigation, faces fines
SK CORP.: Under FTC investigation, faces fines
S-OIL: Under FTC investigation, faces fines
----------------------------------------------------------
South Korea's Fair Trade Commission (FTC) is investigating
whether the country's five oil refiners had colluded in the
fixing of retail prices for refined products and says they
will face a record one trillion won (S$1.4 billion) or more
in fines if found guilty.

SK Corp, S-Oil, LG Caltex Oil, Hyundai Oil Refinery and
Inchon Oil Refinery deny the accusations. Still, the
refiners were fined 190.1 billion won last month for
colluding with one another to fix the price of fuel sold to
the military.

"The FTC has been investigating since August suspicions of
collusion on consumer oil prices among the five refiners
and their intervention to hamper other importers in
violation of the Fair Trade Act," an FTC official in Seoul
told Reuters.  "We plan to impose up to one trillion won or
more in fines if our suspicions are verified. A decision
will be made by this month."

The companies rebut the allegations. "There was no
collusion among the refineries to set up retail prices so
that we could undermine operations of the independent oil
companies," said a Hyundai Oil Refinery official.

The FTC official said the commission had suspected for some
time that refiners were fixing retail prices for oil
products by setting up a system which forced petrol
stations to use only one supplier.  "We are also
investigating allegations that the refiners worked together
to keep independent oil firms from capturing any domestic
market share," he added.

He said the oligopoly was stitched together to compensate
for losses after domestic oil prices were deregulated in
1997 and after the government liberalised laws on oil
products imports last year.  The refiners are appealing
against the penalties over military sales, but the FTC
official said the commission's decision would not be
reversed and that the companies had 60 days from Sept 27 to
pay up.

He said the FTC's efforts to reform oil pricing practices
were necessary to protect consumers.  "The current
oligopoly system is a hindrance to genuine competition
among the refineries. This in turn hurts the consumers."

The FTC was committed to ensuring that the oil industry
benefited from the government's decision to liberate laws
on oil product prices and oil product imports, he said.  It
planned to recommend measures to force refiners to release
their stronghold on retail outlets by re-allocating some
assets to independent players. This would help abolish the
current system which forces retailers to buy from a single
refiner.

"The reason behind the government's decision in 1997 and in
1999 was to make sure the consumer benefited from
competition among the refiners and independent oil firms,"
said the FTC official. "Up to now, we have taken only small
steps to make sure that the positive effects of deregula-
tion are felt. But we are making greater strides to push
the refiners to cooperate with us."  (Reuters, Straits
Times  12-Oct-2000)

SAMSUNG ELECTRONCIS: Share price falls
SK TELECOM: Share price falls
--------------------------------------
Seoul was hit by weak sentiment in tech shares which
prompted foreign selling of Samsung Electronics and telecom
stocks. The composite index fell 5.3 per cent to 557.18.

Chipmaker Samsung Electronics shed 12 per cent to 161,000
won a day after Goldman Sachs downgraded it from
"recommended" to "market performer." SK Telecom fell 6.6
percent to 239,000 won.


===============
M A L A Y S I A
===============

CAMERLIN GROUP SDN BHD: To liquidate Dutch affiliate
----------------------------------------------------
Camerlin Group has reported to the Kuala Lumpur Stock
Exchange that Camerlin International BV will be liquidated
in accordance with the Dutch Civil Code.

Incorporated in the Netherlands, the company is a wholly-
owned subsidiary of Camerlin Holdings Sdn Bhd, which in
turn is a wholly-owned subsidiary of the Camerlin Group.
Camerlin International, a dormant company, had not
commenced business since its incorporation and was not
intended to do so in the future, Camerlin Group said.

The company added that Camerlin International's voluntary
liquidation would not have any financial impact or result
in any loss to the Camerlin Group for the year to Dec 31,
2000.  Equity Trust Co NV has been appointed as liquidator.
(AFX News Limited, Star Online  13-Oct-2000)

SIME DARBY BHD: Voluntary liquidation for affiliates
----------------------------------------------------
Sime Darby Bhd confirms that shareholders of subsidiaries
Sime Tremco Sdn Bhd, Sime Tremco (Malaysia) Sdn Bhd and
Sime Tremco Specialty Chemicals Sdn Bhd have agreed to
voluntary liquidation of these companies.

In a statement to the Kuala Lumpur Stock Exchange, Sime
Darby said the companies' shareholders at a special general
meeting also approved the appointments of Nik Din, Nik
Sulaiman and Saw Teng Chuan as the liquidators. Sime Tremco
is a 51:49 joint venture company between Sime Malaysia
Region Bhd and Tremco Incorporated, and Sime Tremco
(Malaysia) and Sime Tremco Specialty Chemicals are its
wholly-owned subsidiaries.

Parent Sime Darby said voluntary liquidation of the three
companies is not expected to have any material effect on
Sime Darby group's earnings and net tangible assets.

TIME ENGINEERING: Timing bad for debt-cut IPO
UNITED ENGINEERS MALAYSIA: Timing bad for debt-cut IPO
------------------------------------------------------
Initial share sales planned by United Engineers Malaysia
(UEM) and Time Engineering, among the country's biggest
companies, may be at risk after the slumping stock market
took its first initial public offering victim this year.

Shares of Courts Mammoth, a retailer of furniture and
electrical appliances controlled by Britain's Courts, began
trading yesterday, opening at M$2.20, 6.4 per cent below
its initial offer price of M$2.35. It closed at M$2.40.

"The market is going to drift further downwards, so it's
going to be hard for these IPOs," said David Watt at AIMs
Asset Management.

That is bad news for firms banking on the market to fix
their debt woes. Time and UEM are looking to raise M$7
billion (about HK$14.36 billion) through the initial sale
of shares in their units.  "I don't think they'll find
underwriters [for their IPOs] except maybe from the
government", Mr Watt said.

The benchmark 100-stock Composite Index has fallen 5.2 per
cent in the past three weeks and 16 per cent during the
past three months. Time and UEM, which have already
postponed plans to sell shares in their units once, may be
forced to delay again.

Last month, Time - Malaysia's most indebted company - said
it could not meet its October target to raise M$1.8 billion
in the initial sale of shares in its Time dotCom unit.
The telecom company, which wants to raise money to help
repay M$5 billion in debt, set November as the new target
for the share sale. It hopes to raise the money by January.

The IPO of UEM, the country's biggest toll-road operator,
was originally scheduled for December. "The window has
closed for telecom companies . . . You won't find serious
investors for UEM," Mr Watt said. (South China Morning
Post, Bloomberg  12-Oct-2000


=====================
P H I L I P P I N E S
=====================

WESTMONT INVESTMENT CORP.: SEC widens probe
-------------------------------------------
The Securities and Exchange Commission is building an
airtight case against the officers and directors of debt-
strapped investment house Westmont Investment Corp. found
to have allegedly breached securities rules and laws in
preparation for the filing of a criminal complaint with the
Department of Justice next month.

The Prosecution and Enforcement Department, the SEC's
investigation arm, has expanded its investigative report to
include violations of Section 29 a-1 and a-2 of the Revised
Securities Act.  Section 29 states that "it shall be
unlawful for any person, directly or indirectly, in
connection with the purchase or sale of any securities to
employ device or scheme to defraud and obtain money by
means of nay untrue statement of a material fact.

The PED claimed that Wincorp has made some misrepresenta-
tions to various investors, most of whom are Binondo and
Cebu-based Chinese-Filipino individuals.  Findings by the
PED also showed that Wincorp had violated rules on short-
term commercial papers by failing to register with the SEC
the confirmation advice issued to about 2,200 investors.

Under Section 4 of the RSA, no securities shall be sold to
the public unless such securities have been registered with
the Commission.  Under the rules, debt instruments are
exempt from registration if they are issued to not more
than 10 lenders and the total outstanding amount of such
securities does not exceed P5 million.

Findings showed that Wincorp issued an average of P1
billion worth of CPs per month and the debt instruments
were not held up to their maturity in violation of the
rules governing CPs.  The existing rules provide that all
debt instrument shall be held on to maturity and shall
neither be negotiated nor assigned to any one other than
the Central Bank and the Development Bank of the
Philippines.

After extensive discussion on the Investment Contract
Theory, the PED agreed that the issuance of confirmation
advice in exchange for the investment of investors
constitutes a scheme which is in the nature of an
investment contract and therefore non-registration of the
same will hold the company accountable under Section 56 of
the RSA.

Section 56 of the RSA states that any person who violates
any of the provisions of this Act shall upon conviction,
suffer a fine of not less than P5,000 nor more than
P500,000 or imprisonment of not less than seven years nor
more than 21 years or both in the discretion of the court.
The PED intends to refer to the Money Market Operations
Department the imposition of administrative sanction
against Wincorp.  (Manila Times  13-Oct-2000)


=================
S I N G A P O R E
=================

CHARTERED SEMICONDUCTOR MFG.: Share price falls
-----------------------------------------------
Singapore stock market followed the Korean market, dropping
3.5 percent to 1,846.56 on the Straits Times index, the
fourth steepest fall this year.  Chartered Semiconductor
Manufacturing, the world's third biggest independent
"foundry" chipmaker, tumbled 15 per cent to a new year low
of S$7.65.


===============
T H A I L A N D
===============

LOXLEY PLC: To hold new vote on rehab plan Oct. 26
--------------------------------------------------
Loxley Plc said yesterday that it would hold a new vote of
bondholders for the firm's 10.47-billion-baht restructuring
plan on Oct 26.

A meeting of holders of the firm's 2.5% euro-convertible
bonds due in 2001 was adjourned yesterday after failing to
meet a quorum. An informal vote of bondholders voted
unanimously in favour of the restructuring, with a new
meeting to be held on Oct 26.  An vote by holders of
Loxley's 3.5% euro-convertible bonds went in favour of the
restructuring plan.

"The company has reason to believe that when the meeting is
reconvened.. its restructuring proposals will also be
approved by the 2.5% bondholders, enabling it to proceed
with the implementation of its debt restructuring plan,"
Loxley said.

The firm announced earlier this week it would raise paid-up
capital to two billion baht from 400 million as part of the
restructuring plan. The two ECD issues account for total
debt of $265 million, with another $11 million in debt owed
to two foreign banks.

Under the plan, ECD holders would convert $125 million in
debt to 85 million common shares at a price of 60 baht per
share. The remaining $140 million in debt to ECD holders
will be repaid over eight years with interest rates set
from 7-8.75% per year. The company will also issue 75
million new shares, priced at 8.5 baht each.

Existing shareholders will be offered 65 million shares,
with the remaining 10 million privately placed. The second
group of debts, totalling $11 million, will be reduced by
50% assuming ECD holders accept the plan and that board and
shareholder approval is secured. Shares of Loxley on the
Stock Exchange of Thailand yesterday closed at 18.75 baht,
up one baht, on heavy trade worth 183.76 million baht.
(Bangkok Post  13-Oct-2000)

NAWARAT PATANAKARN: Rehab plan approved
---------------------------------------
Whereas Nawarat Patanakarn Public Company received an order
for business reorganization on March 20 from the Central
Bankruptcy Court and had Mr. Mana Karnasuta appointed to
act as plan preparer, the company has now reported to the
Stock Exchange of Thailand that the Central Bankruptcy
Court has issued an order approving the Business
Reorganization plan of the Company.

According to such order, the rights and duties in managing
the business and assets of the Company by the plan preparer
were immediately passed to the Plan Administrator,
Chaiprakarn Company Limited, on October 10.

PROPERTY PERFECT: Posts annual loss
-----------------------------------
Property Perfrect recorded a Bt3.573 million net loss for
1999. That was slightly lower than the Bt3.972 million net
loss it posted the year before. Earnings per share in 1999
were minus Bt49.33 against minus Bt61.07 in 1998, the
company said in a press release. The property developer's
shares are currently suspended from trading.


S U B S C R I P T I O N  I N F O R M A T I O N

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